Guernsey's parliament has passed a set of economic taxation changes that include a zero rate of income tax on company profits, except for specific banking activities, which will be taxed at 10%.
Guernsey residents will continue to pay tax at 20% on accessible income and personal tax will be capped at £250,000 on non-Guernsey income and investment income.
Our view
These tax measures are attarctive. However, if you plan to set up an offshore company and then plan to exclusively trade in the EU
1) You may find it difficult to obtain trade licences and
2) You are likely to be liable to taxes in the country of trade.
Offshore company formation is a complex issue and for the right business model, it can be good.
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